How to Draw Commodity Fib Projection on Upward Commodities Trend
Drawing Fibonacci Projection Zones on an Upward Commodity Trend
We use Fibo Projection levels to estimate where the commodity trend movement will reach. There are 2 oftenly used Fibonacci Projection levels: 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for setting take profit levels.
On the Fibonacci Projection technical indicator example illustrated and explained below you can see that the Fibonacci Projection technical indicator is plotted along the direction of the commodity trend, since the commodity trend is up - the Fibonacci Projection technical indicator is drawn upwards.
These Fibo Projection levels are shown as horizontal lines above Fibo Projection technical indicator, showing profit taking areas. In the commodity example illustrated & explained below if you had used 100.00% Fibonacci Projection level you would have made good profit from using this trading setup.
How to Draw Commodity Fib Projection on Upward Commodities Trend - How to Draw Fibonacci Projection on Up Commodities Trend
From the above Fibonacci Projection technical indicator tool example, the upward commodity trend continued & both 61.80% and 100.00% Fibonacci Projection levels were all hit after which the commodities price retraced again after getting to the 100.00% Fibo Projection level.
From the Fibonacci Projection technical indicator tool example above, after plotting this Fibonacci Projection tool there are 2 levels that are used to show the profit taking areas, these two Fibonacci Projection areas are plotted as horizontal lines across the commodities chart marked as 61.8%Fibo Projection Level and 100% Fibonacci Projection Level.
Explanation of How to Draw Fibonacci Projection Levels on Commodity Charts
We use Fibo Projection levels to estimate where the commodity trend movement will reach. There are Two important Fibo Projection levels: 61.8% and 100% Fibo Projection Levels, these are used for profit taking.
To draw Fibo Projection levels on commodities chart we wait until the commodities price retracement is complete & the commodities price starts to move in original direction of the Commodities trend. Where the commodities price retracement reaches is used as chart point 3. Fibo Projection Indicator is plotted using three chart points as shown and illustrated on the commodity example illustrated and explained below of how to plot the Fibonacci Projection Technical Indicator Tool.
The Fibonacci Projection examples illustrated & explained below shows the 3 Chart Points where the Fibonacci Projection technical indicator is drawn, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where the commodity trend started, Chart point 2 is where the commodity trend pulled back & retraced and Chart point 3 is where the commodity retracement reached as displayed on the Fib Projection Technical Indicator Tool example illustrated & explained below.
How to Draw Fibonacci Projection Commodity Technical Indicator Tool on Upwards Commodities Trend
Please note where these Fibonacci Projection areas are plotted - Fibo Projection zones are drawn above the Fibo indicator, these are the chart points where a trader will set the takeprofit orders using these Fib Projection Levels - 61.8% & 100.0% Fibo Projection Levels.
